NNPC Ltd Clarifies Role in Dangote Refinery Amid MURIC’s Allegations

The Nigerian National Petroleum Company Limited (NNPC Ltd) has responded to allegations made by the Muslim Rights Concern (MURIC), which claimed that NNPC Ltd is undermining the operations of the Dangote Refinery Limited (DRL).

According to MURIC, recent changes in the pump price of Premium Motor Spirit (PMS) will prevent Dangote Refinery from offering lower prices, and that NNPC Ltd has monopolized the off-take of all products from the refinery.

In a press release, NNPC Ltd refuted these assertions, emphasizing that the pricing of petroleum products from any refinery, including DRL, is determined by global market forces. The state-owned oil company clarified that changes in PMS prices have no bearing on any domestic refinery’s access to the Nigerian market. On the contrary, the NNPC Ltd stated that the current pricing environment offers an opportunity for DRL and other domestic refineries to sell at lower prices if they can offer better deals.

The NNPC Ltd further stressed that it is not the sole offtaker of products from Dangote Refinery or any other domestic refinery. “The DRL and any domestic refinery are free to sell their products to any willing buyer in a fully deregulated market,” the company explained. NNPC Ltd highlighted that it would only fully offtake products from DRL if market prices are higher than the regulated pump prices in Nigeria.

Additionally, NNPC Ltd underscored that as an investor with a significant stake in Dangote Refinery, it has no interest in undermining its success. The company also urged MURIC to fact-check its claims, accusing the group of making misleading statements that could incite public discontent against the NNPC.

The press release, signed by NNPC Ltd’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized the company’s commitment to operating within a free market and reiterated that it has no plans to control distribution in the deregulated petroleum sector.

The controversy comes as Nigeria’s fuel market continues to evolve, with the anticipated full operation of Dangote Refinery expected to play a crucial role in domestic refining. NNPC Ltd’s statement reaffirms its stance on market competition and transparency.